A joke that the production cost is higher than the sales.

Ok, let's take a look at this trading company first. Although there is no production process, you can also regard it as production, but the production process is zero burden.

what can I say? For example, a trading company sells washing machines. It only needs to buy a washing machine. Suppose the company has just started business, and the purchase price of a washing machine is 5000 yuan, and the monthly purchase price is 100. 60 sets were sold that month, and one set sold for 6000 yuan. There will be 40 left at the end of the month.

So, how much did it cost: 60 sets * 6,000 yuan a set = 360,000 yuan.

Cost of sales refers to the cost of selling products. Because the production process of the trading company is zero, how much to buy, the cost of sales and the unit price. So the sales cost is: 60 sets * 5,000 yuan = 300,000 yuan.

This is the cost of sales. Very clear.

If expressed by the concept of production cost, it becomes: because production has a process, there is the concept of production cost. Then the trading company insisted on using the concept of production cost to express:

The price of purchased goods+labor cost in the production process+consumables in the production process, water and electricity rental cost = production cost.

In other words: the production cost is three things spent this month to complete the "marketable product": materials, labor and expenses.

So the production cost of this trading company is expressed in figures as: 100* (5000+ 0+0).

Because there is no production process, the first item is to buy as much as possible, and the second item is to sell "materials" without manpower and electricity, so it is also zero.

This is easy to understand.